Chinese mills have once again witnessed downward movement in the domestic steel market which leads to decline in HRC exports offers. Moreover Chinese manufacturers are also facing inventory issues causes decline in both domestic as well as in HRC export offers.
Currently HRC export offers are prevailing in the range of USD 415-425/MT, FoB China. Last week the offers were heard in the range of USD 425-435/MT,on FoB basis.
Meanwhile prices of HRC in domestic market are heard to be in the range of RMB 2,980-3,000/MT which is equivalent to USD 434-437/MT, including VAT & other taxes.
Major mills have also sold at USD 425/MT on FoB basis.Moreover some deals have been concluded at USD 440/MT on Fob basis to South East Asia.
Chinese CRC export offers are at USD 450-460/MT, FoB China, marginally down by USD 10/MT W-o-W.
However market participants mentioned that further fall in prices will hurt the profit margin as it will come at par with cost of production.
Japanese HRC Export Offers Likely to Rise Marginally – Sources
After a long holiday period over golden week holidays Japanese steel makers are yet to announce fresh HRC export offers. However, couple of weeks back offers were USD 480/MT, FoB Japan. Amid marginal increase in Chinese HRC export offers observed last week, Japanese steel mills are expected to raise offers to USD 490/MT FoB basis.
Market sources shared that Japanese steel mills will not go for a considerable hike in export offers when offers from China seems more competitive.
Indian HRC Exports Offers at USD 470-480/MT, FoB
Indian HRC export offers are around USD 470-480/MT, FoB India. Market participants shared that over dull buying interest from Vietnam based importers no major export deals were concluded by Indian exporters, however small quantity deals were carried out for Europe.
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